Gaming Authorisation Regulations

Malta recently overhauled the framework regulating the iGaming sector. Going forward operators will still be required to obtain authorisation to carry out regulated activities. However, a simplified authorisation system has been introduced which allows operators to provide different services under one license. The multiple license system is to be scrapped with a new system being introduced.

A person shall not be eligible to hold a licence unless such person is established in the European Economic Area.

Where the person is a body corporate, a licence may be applied for by either itself or for its corporate group, in which case the approved members of the corporate group shall be jointly and severally considered as the licensee.

The recently enacted Gaming Authorisations Regulations stipulate that in order to provide or carry out a gaming service or provide a critical gaming supply from Malta or to any person in Malta one will require a licence from the authority. It has been noted that certain activities that were not licensable are now being given recognition and would be considered as licensable activities.

 

The Authority shall have the power to issue licences of the following categories:

a. Gaming Service licence: a business to consumer licence to offer or carry out a gaming service. A B2C License - effectively replacing the old Class 1-3 licenses; or


b. Critical Gaming Supply licence: a business to business licence to provide or carry out a critical gaming supply. B2B License - effectively replacing the Class 4 license.


Gaming Services are defined as:

Type 1: Games of chance played against the house, the outcome of which is determined by a random generator, and shall include casino type games including roulette, blackjack, baccart, poker played against the house, lotteries, secondary lotteries and virtual sports games. 

Type 2: Games of chance played against the house, the outcome of which is not generated randomly, but is determined by the result of an event or competition extraneous to a game of chance, and whereby the operator manages his or her own risk by managing the odds offered to the player.

Type 3: Games of chance not played against the house and wherein the operator is not exposed to gaming risk, but generates revenue by taking a commission or other charge based on the stakes or the prize, and shall include player versus player games such as poker, bingo, betting exchange, and other commission based games.

Type 4: Controlled skill games.